Lagos State Electricity Regulatory Commission Issues Order To Regulate Electricity Market Operations

The Lagos State Electricity Regulatory Commission (LASERC) has formally issued Order No. LASERC ORDER/001/2025 establishing the regulatory framework for electricity market operations within Lagos State. This milestone Order marks the official conclusion of the transition period for the transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission to LASERC, as stipulated in the Electricity Act 2023 and the Lagos State Electricity Law 2024.

The Order, which takes immediate effect, prohibits all individuals and entities from undertaking regulated electricity activities within Lagos State without a valid license or permit issued by LASERC. The Commission emphasized that holding a license from any other regulatory body will not exempt violators from liability under the new regulatory regime.

According to the Order:

All unlicensed operators must immediately cease regulated activities and apply for appropriate licensing from the Commission.

Violators face penalties including fines of not less than N20 million and an additional N20,000 for each day of continued non-compliance.

Entities uncertain about their regulatory status are encouraged to seek official clarification from the Commission.

The Order also affirms the continued applicability of existing national regulatory instruments — including tariff guidelines, grid codes, safety standards, and metering regulations — as binding on all electricity licensees operating within Lagos State, pending any amendment or further directive from the Commission.

“This Order reinforces LASERC’s mandate to ensure a safe, efficient, and reliable electricity market in Lagos,” said Dr. Fouad Animashaun, CEO/Executive Commissioner of LASERC. “We are committed to upholding global standards and protecting electricity user and investor interests in the evolving power sector

Lagos Takes Charge: State Electricity Regulator Issues Landmark Order, Reshapes Power Sector

Lagos, Nigeria – June 12, 2025 (Igbenews) In a decisive move marking a new era for power in Nigeria's commercial hub, the Lagos State Electricity Regulatory Commission (LASERC) has formally enacted its foundational regulatory framework. Order No. LASERC ORDER/001/2025, issued today, establishes the rules governing electricity market operations within Lagos State and signifies the official conclusion of the transition period for regulatory control.

This transition, mandated by the federal Electricity Act 2023 and the Lagos State Electricity Law 2024, transfers primary regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to LASERC for activities within Lagos.

Key Provisions of the LASERC Order:

1.  Mandatory Licensing: The Order takes immediate effect, prohibiting all individuals and entities from undertaking any regulated electricity activity within Lagos State without a valid license or permit issued specifically by LASERC. Crucially, the Commission emphasized that holding a license from NERC or any other body **does not exempt** operators from this requirement or potential penalties under the new state regime.

2.  Cease and Apply: All entities currently operating without a LASERC license must immediately halt regulated activities and submit applications for the appropriate state license.

3.  Stiff Penalties: Violators face severe consequences, including fines of at least N20 million, plus an additional N20,000 for each day non-compliance continues.

4.  Clarification Urged: Entities unsure if their activities require licensing are strongly advised to seek immediate official clarification from LASERC.

5.  National Standards Maintained (For Now): The Order affirms that existing national regulatory instruments – including tariff methodologies, grid codes, safety standards, and metering regulations – remain binding on all licensees operating within Lagos State. However, LASERC reserves the right to amend or issue new directives superseding these national standards in the future.

Shift in Power Dynamics:

This Order fundamentally alters the landscape for electricity distribution companies (DisCos) like Ikeja Electric and Eko Electricity Distribution Company. Previously operating primarily under NERC's federal oversight, these major DisCos now fall directly under the regulatory authority of the Lagos State Government through LASERC. This shift means they must obtain state licenses, comply directly with LASERC directives, and operate within the regulatory framework set by the state, significantly reducing their operational autonomy from federal oversight within Lagos boundaries.

Official Statement:
Dr. Fouad Animashaun, CEO/Executive Commissioner of LASERC, stated: “This Order reinforces LASERC’s mandate to ensure a safe, efficient, and reliable electricity market in Lagos. We are committed to upholding global standards and protecting the interests of both electricity consumers and investors in Lagos State’s evolving power sector. This marks the beginning of a more localized and responsive regulatory approach tailored to Lagos's unique needs.”
Implications:
The issuance of Order No. 001 signifies Lagos State's assertive step towards exercising its constitutional powers over electricity regulation. It brings regulatory decisions closer to the local context but also imposes new compliance requirements on all market participants. The coming weeks will be critical as unlicensed operators scramble to comply and major players like Ikeja Electric and Eko Electric formally transition to operating under LASERC's direct supervision. Consumers and investors alike will watch closely to see how this new regulatory era impacts service delivery, tariffs, and market development within the state